The global IPO performance on the global stock market this year was low despite Aramco’s listing,. Which was one of the largest IPO ever, a report showed.
Citing a market research company called DeloSik, the Financial Times reported on Monday that the number of IPOs worldwide plunged 20 percent to 1,237 this year from last year, the lowest in three years. The amount of IPO procurement this year also shrank to a total of $188.8 billion. Down 10 percent from last year, the lowest level in three years.
Asia hits the lowest IPO performance
By region, the slump in Europe and the Middle East stood out. This year, 179 companies in the region went public on IPOs. Down 40 percent from a year earlier, hitting a seven-year low. In Britain, the number of IPOs plunged 62 percent due to a prolonged Brexit issue. The number fell 15 percent in South and North America, while Asia shrank to its lowest level in five years, the FT said.
In the U.S., unicorns (start-ups worth more than $1 billion) suffered a crushing defeat due to controversy over the bubble in the shared economy. Uber has seen its stock price fall by about a third since its listing on the New York stock market in May. Share-office company WeWork gave up its IPO in September amid growing skepticism over its business model. “This is a disappointing year for the U.S. IPO market,” the Wall Street Journal said.
However, with the success of Saudi Arabia’s state-run oil company Aramco, the global IPO market can breathe a little. Aramco, which was listed on the Saudi Tadaul stock market in November, raised $25.6 billion, breaking the record of the largest IPO ever set by China’s Alibaba ($25 billion). The private equity market, such as private equity funds and venture capital, is expanding as the IPO market remains sluggish,
